Experience
Financial Services
Australia’s four pillar bank network has provided incredible stability for the Australian economy, while the economic boom and low interest rates over the past 10 years has led to more competition and the rise of non-bank lenders.
The result has been the development of new trade finance providers, non-bank mortgages and retail finance providers including BNPL.
Key Challenges
- Australia’s open banking platform and traditional four pillar banking system has created one of the most stable regulated banking payments systems in the world. What we lack in scale is made up for in our ability to create new and unique payment programmes, which make us market leaders. This is not without its challenges. The BNPL sector grew on the back of consumer demand in the past few year but has now seen a rapid decline as interest and inflation risk create consumer uncertainty.
- The financial planning market which saw consolidation into the main banks to cross sell products has resulted in sales and demergers in the wake of the Banking Royal Commission, weighing on net interest margins and causing industry profit margins to fall over the past five years.
- Business confidence, consumer sentiment, residential property market conditions and global growth prospects will likely dictate the financial services industry’s performance. Overall, the industry’s outlook is forecast to be positive over the next five years, with industry revenue forecast to grow at an annualised 7.8% over the next five years through 2026-27, to $269.5 billion.
Our experience
Olvera principals have worked on a number of high profile financial restructures, including the solvent wind down of Babcock & Brown, the first Deed of Company Arrangement on Lehmans Australia and the acquisition of securities brokerage
Our affiliate Olvera Capital is an authorised representative under AFSL 519985 to provide general advice and debt advisory.
Case Studies
Our case studies only include publicly identified clients.
Secure Mortgage Management
Olvera principals were appointed as Liquidators by the Court to wind up the responsible entity for a mortgage fund The Summit Mortgage Fund
that raised funds to fund property-backed secured commercial loans. The total loan portfolio had a book value of over $100mill on the date of the appointment as liquidators. Our role was to undertake a realisation strategy for each of the loans in the portfolio, many of the underlying security properties were partly completed and in some cases construction building work had stopped some years ago due to the lack of funding.
As Liquidators, we commenced actions concerning negligence claims against valuers on eight loans. We successfully commenced claims for indemnity in relation to capital insurance. As a result of the above actions, approximately $20mill has been returned to creditors.
Babcock & Brown
Olvera executives were engaged as Corporate Advisors to the board and senior management on working capital head room
including the consolidation of cash from subsidiaries to central treasury functions. Olvera executives worked to maximise cash for covenant testing after the company share price fell by more than 25% resulting in a technical breach of facilities.
Recognising the fundamental role of cash culture within a business results in a more effective application of free cash, lower administrative costs, reduced borrowing needs and improved investment performance overall.
Olvera principals worked closely with the board, management and treasury teams to ensure cash forecasting and management methodologies are tailored to each individual business situation.
BBY
BBY Limited was the largest independent brokerage house in Australia and New Zealand until its collapse in 2015.
Olvera acted as adviser to AIMS Group who acquired the residual business of BBY through direct purchase and through a number of deeds of company arrangement which allowed AIMS to maintain the companies AFSL.
The acquisition allowed AIMS to grow its consumer client base by 30,000 active clients.
Octaviar Group
Olvera principals were appointed as Liquidators to 14 companies in the Octaviar Group.
The group consisted of 100 companies. The Group operated a vast array of businesses that ranged from property funds, corporate finance lending, child care centres, aged care facilities, funds management, ski and holiday resorts, travel, tourism and hotels.
These groups businesses were predominantly in Australia but there were also notable interests in New Zealand investment schemes and investment and advisory services in Dubai. Creditors were in excess of $1.5billion.
Investigations were hampered by the complexity of the group – there were over 400 entities and intercompany loans totalled over $500m. The loans were convoluted and documentation largely unsubstantiated. Investigations included approximately 60 days of public examinations of key executives, personnel and advisers. It also involved reviewing and investigating a significant volume of documentary material including:
Investigations focused on the following complex litigation issues:
